FINALLLLLL FML
When the San Francisco city manager faces a complaint that the city council chamber podium is not accessible to individuals with disabilities, he responds that the $1 million improvement will not happen because "that money could be spent building 70 curb ramps." This statement best represents this economic concept:
how the real cost of something is what you must give up to get it
which of the following methods of encouraging recycling is likely to be most effective?
imposing a tax per unit of garbage generated
a shift of a demand curve to the right, all the other things unchanged will
increase equilibrium price and quantity
suppose the government of Coffeeland sets coffee prices at $1 per pound, when the market price is $10. The governments action will:
cause coffee shortages even in a coffee-rich country
Economists tend to believe that to change people's behavior you must:
change their incentives
when the price of gasoline goes down and the demand for tires goes up, this means tires and gasoline are
complements
the study of a single firm and how it determines prices would fall under
microeconomics
economic models help economist
simplify the complexities of the economy into something that is more readily studied
when the supply curve shifted from S1 to S2, the new intersection of supply and demand has a price of ______ and quantity of 400. This could have resulted from______
$1.50; an increase in refining technology
Excess supply would exist in this market if a price floor is equal to ______ was imposed in this market
$20
the equilibrium quantity and the equilibrium price are ____ bags and _____
175; $0.60
at market rental price of $6 there will be
an excess supply of 20 DVD rentals
a government imposed price ceiling equal to $5 would result in
excess demand
Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?
the price will decrease, but quantity may increase, decrease or stay the same
if George, Barbara, and Dan are the only three buyers in the market, and the price of a nah of chocolate-covered peanuts is $.50 the total market demand is ____ bags per month
210
if the price of chocolate-covered peanuts is $.60 the quantity demanded by George is ______ bags per month
25
if the government imposes a price ceiling of $.80 per pound of butter, suppliers will produce ____ pounds of butter and there will exist _____ in the market
8 million: and shortage of 3 million pounds
if the government imposes a price ceiling of $1.00 per can of soda, the quantity of soda demanded will be
8 units
if the price of lemonade is $1 per cup, total quantity of lemonade supplied will be
90 cups
if a fish is a substitute good for coconuts and the price of fish increases, then the movement would take place in the model could be
A to C
The cost of leaving a championship soccer match before it ends is ________, while the cost of staying for the entire match is ________
B) the opportunity cost of not seeing the winning goal with two minutes to go; the opportunity cost of what else you could have done during that time
suppose most people only drink orange juice with champagne. what will be the new equilibrium point in the orange juice market if a law banning alcohol passes?
D
French fries and hamburgers are complements. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. the demand of french fries will ______ the equilibrium price of french fries will ________ and the equilibrium quantity will ________.
Demand: Decrease Price: Decrease Quantity: Decrease
if coconuts are considered a normal good and there is an expectation on the part of consumers that the prices of coconuts will rise significantly in the near future, then the movement that would take place in the model could be
E to B
if there is a binding price ceiling in the market for hybrid cars, the price would be equal to ___, consumers would demand ____ and producers would supply _____
P3, Q3, Q1
which of the following is true
Inflation means an increase in the overall level of prices.
the labor force is defined as:
The total of the persons employed and unemployed
when a country total level of output undergoes periodic fluctuations, it is generally known as
a bushiness cycle
an increase in supply of a good is caused by
a decrease in price of goods that are substitutes in production
economists are reporting that sugar prices have risen. Until more data is collected, it is soon to tell that sugar consumption rise or falls. This is consistent with
a decrease in supply and an increase in demand for sugar
which of the following would have decreased the demand for bananas
a decrease in the number of producers
economic expansion is typically associated with which statistic
a falling unemployment rate
which of the following is an example of a normative statement
a high rate of economic growth is good for the country
a price ceiling is likely to result in
a persistent shortage, transfer surplus from producers to consumers, and inefficient allocation of the good to consumers
if the equilibrium price for wheat is defined by the graph, how could the government help increase farmers income
a price floor could be set at P4, causing surplus of Q3-Q0
suppose an effective price ceiling is imposed in the graph above. The consumers surplus after the price ceiling is given by the area
achd
If during a period of several months we observe the economy to be simultaneously increasing its level of output and employment, we could assume that the economy is in:
an expansion
which of the following would shift the demand curve for new textbooks to the right
an increase in college enrollments
an increase in demand, with no change supply , will lead to _____ in equilibrium quantity an _____ in equilibrium price
an increase:an increase
the law of demand states that, other things equal
as the price increases, the quantity demanded will decrease
economist believe that the supply of solar panels has recently increased. In a graph this means that
at any price, producers are willing to supply more solar panels for sale in the market
a price ceiling on a good often results in
black market or underground transactions of the good
the point at which a recession ends and the expansion begins is called the
business cycle through
if the price of gasoline falls and stays low for an extended period of time, we except people to
buy larger and less fuel efficient cars
the law of demand implies that
consumers will buy more at lower prices.
Good X and Good Y are substitutes. Holding all other things constant, this means that when the price of Good X increases, the:
demand for Good Y will increase
suppose oranges and clementines are considered to be substitutes. holding everything else constant, if the price of oranges increases, then the
demand for clementines will increase
what would happen in the market for canned pinto beans if your income increases?
demand increases if pinto beans are a normal good
an increase in the price of wheat, an important ingredient in the production of bread, combined with an increase in the number of people consuming bread, will result in which of the following changes in the bread market?
equilibrium price will increase, but equilibrium quantity may decease, increase, or stay the same
the problem of determining what goods and services society produce
exists because there are not enough resources to provide all the goods and services that people want to purchase
in a typical business cycle, the business cycle trough is immediately followed by the
expansion
a technological advance in the production of automobiles will
increase the supply of automobiles
a price floor in the market for wheat:
increases the price paid by consumers.
the market for corn is currently in equilibrium. Which of the following is most likely to increase the equilibrium price of corn
increasing production of corn-based ethanol
black markets pay develop with price controls because
individuals can profit by illegal exchanges
the current rate of unemployment is 5%. This statement:
is positive
which of the following is most likely a macroeconomics question rather than an microeconomics question?
is the national unemployment rate rising or falling
a binding price is ceiling is designed to
keep prices low
the horizontal summation of individual demand curves for a particular product, holding the price constant, is referred as
market demand
water is considered a scare good because
not enough of it is available for all needs at zero cost
Scarcity in economics means
not having sufficient resources to produce all the goods and services we want
Florida schools offered cash bonuses to students who scored high on the state's standardized exams. The cash bonuses are an example of how
people usually respond to incentives
an effective price floor would be the price indicated at ____ and a ____ would exist as the difference between _____
point b: surplus: points f and e
When price controls take the form of maximum prices set below the equilibrium price, they are:
price ceilings
economists generally agree that ________ is an appropriate policy goal
price stability
suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests. At the same time, the price of ceramics used to produce vests fall. Then, the equilibrium price of bulletproof vests ______ and the equilibrium quantity produced _____-
probably changes, but in an ambiguous direction; increases
the ______ apples will decrease due to higher apple prices
quantity demand for
when a market is in equilibrium, one will find that the
quantity demanded is equal to quantity supplied
if the price of good X increases, you would expect the
quantity of good X supplied to increase
a period of falling real gross domestic product is a indicator of an
recession
in a typical business cycle, the business cycle is immediately followed by the
recession
"In Colorado, there has been a drought and rural communities are fighting with urban areas over water" this statement best represents the economic concept of
resources are scare
a business cycle is
short-run alternation between economic upturns and downturns.
this figure represents a competitive market of apartments. If a government price ceiling at $900 is now imposed on this market (in the name of fairness) then an inefficiency will result in the form of a
shortage of 0.2 million apartments
which of the following would most likely be a microeconomics question?
should i go to business school or take job?
which of the following would describe a person who is counted as unemployed by the government
stan does not have a job but is actively seeking employment
you notice that the price of DVD players falls and the quantity of DVD players sold increases. This set of observations can be the result of the
supply of DVD players shifting to the right
if the government imposes a price floor if $1.00 per can of soda
surplus of 3 units
If a price of $10 temporarily exists in this market, a:
surplus of 8,000 bushels will result
the local Taco Hut charges the same price for everything on its menu: $3 will buy a taco, or a burrito, or nachos. You buy the taco and think that if you had not purchased the taco, you would have purchased the burrito. The opportunity cost of the taco is
the burrito
consider the market for corn. what happens if there is an increased demand for corn tortillas and, at the same time, a new corn seed becomes available that drastically increased the per-acre output?
the change in price is uncertain, quantity increases
recent research suggest that certain plastic countries may have cancer causing elements in them. as a result of this research, one would expect that
the demand for such containers would decrease
The market for milk is initially in equilibrium. Assume that an advertising campaign succeeds in shifting consumer tastes toward drinking milk. Due to the increased popularity of milk, more milk producers enter the market. Standard demand and supply analysis tells us that:
the equilibrium quantity of milk will rise, but we cant determine how the equilibrium price will be affected
when a chef creates a dinner plate of food for a customer, which of the following represents the physical capital resource
the oven
which of the following is an example of a positive statement
the poverty rate is 4%
in the market shown in the figure, a binding price ceiling is represented by
the price P3
When the price of corn is rising, we would expect:
the quantity supplied of corn to be rising
In the local market for coffee, what would happen if Joyce Java and Everyday Joes coffee shops go out of business?
the supply curve shifts to the left
when the demand for gadgets rises and the supply of gadgets rises, we predict that
there is an ambiguous change in gadget prices, and the quantity of gadgets rises
if resources are "scare" it means that
they cannot provide enough goods or services to satisfy all human material wants and needs at zero cost
the basic concern of economics is
to study the choices people make
Suppose government economists recommended that policymakers should either increase taxes or decrease government spending. This recommendation was most likely based on the fact that:
too much spending was causing inflation
an increase in demand and a decrease in supply , will lead to an_____ in equilibrium quantity an _____ in equilibrium price
uncertain change; increase
One of the issues of importance to macroeconomists is:
understanding how living standards change over time
When a local factory closes, why does it spell bad news for the local restaurants?
unemployed factory workers have lower incomes and are less likely to dine out.
economic models often
vary greatly in assumptions and simplifications.
When a tenant in a rent-controlled apartment sublets the apartment to another renter at a rent higher than the price ceiling:
we say that the transaction takes place on a black market
a normative statement deals with
what ought to be
For an economist, the cost of something is:
what you gave up to get it
a good is inferior if
when income increases, demand decreases
